On January 1, 2023, Crane Inc. entered into a futures contract to purchase U.S. $5,890 for CAD $6,270 in 30 days on the Futures Exchange. On January 15, the fair value of the contract was $38 (reflecting the present value of the future cash flows under the contract). Crane Inc. was required to deposit $21 with the stockbroker as a margin. Prepare the journal entries to update the books on January 1 and 15. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit
On January 1, 2023, Crane Inc. entered into a futures contract to purchase U.S. $5,890 for CAD $6,270 in 30 days on the Futures Exchange. On January 15, the fair value of the contract was $38 (reflecting the present value of the future cash flows under the contract). Crane Inc. was required to deposit $21 with the stockbroker as a margin. Prepare the journal entries to update the books on January 1 and 15. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Urmila ben
Transcribed Image Text:On January 1, 2023, Crane Inc. entered into a futures contract to purchase U.S. $5,890 for CAD $6,270 in 30 days on the Futures
Exchange. On January 15, the fair value of the contract was $38 (reflecting the present value of the future cash flows under the
contract). Crane Inc. was required to deposit $21 with the stockbroker as a margin.
Prepare the journal entries to update the books on January 1 and 15. (Credit account titles are automatically indented when the amount is
entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal
entries in the order presented in the problem. List all debit entries before credit entries.)
Date
List of Accounts
Account Titles and Explanation
Debit
Credit
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